Company Management Business - Financial Services

Financial Services

Areas of Business:

Overview

Company management business in Labuan IBFC provides treasury processing services to its group of companies and associated companies globally. These services include:

Arranging credit facilities;
Providing corporate finance advisory services;
Providing guarantees, performance bonds, standby letters of credit and services relating to remittances;
Managing the funds of any of its approved offices or associated companies;
Performing economic or investment research and analysis;
Providing credit administration and control;
Providing general management and administration; or
Providing business planning and coordination.

In line with Shariah related services, the Labuan company management can also provide Islamic treasury processing services to its group of companies and associated companies globally. Labuan company management that provides Islamic company management services must engage a Shariah Advisor to advise on its operations.

Frequently Asked Questions

What is Labuan Banking?
Labuan banking means the business of receiving deposits on current accounts, deposit accounts, savings accounts, and includes the investment banking business, Labuan financial business, Islamic banking business and such other transactions and terms and conditions as specified by Labuan FSA in any currency including Malaysian Ringgit where permitted by Bank Negara Malaysia.
What is Investment Banking?
Investment banking means the business of providing credit facilities and consultancy and advisory services relating to corporate and investment matters, including making investments on behalf of any person. Other activities include undertaking foreign exchange transactions, interest rate swaps, dealings in derivative instruments or derivative financial instruments or any other similar risk management activities.
What is Islamic Banking?
Islamic banking is defined as a banking business that is in accordance with Shariah principles.
Who may apply for a Labuan banking license?
Organisations that meet the following minimum criteria may apply for a Labuan banking licence:
Must be a bank or financial institution;
Possesses a sound track record;
Accorded a good credit rating by acceptable rating agencies;
Supervised by a competent regulatory authory; and
Conforms to generally accepted standards of international banking practices or the Bank for International Settlements (BIS).
What is the minimum working fund for an investment bank?
RM10 million or its equivalent in any other currency.
What products and services are currently offered by Labuan banks?
Labuan banks offer the following products and services:
Term/fixed deposits in major international currencies;
Project financing (project evaluation/feasibility studies);
Capital restructuring;
Revolving credit;
Syndication / loan arrangement;
Trade financing (letter of credit);
Islamic financing;
Performance and financial guarantees;
Private banking / portfolio fund management;
Investment banking / corporate advisory (initial public offerings (IPO), mergers and acquisitions);
Listing of financial instruments on the Labuan International Financial Exchange (LFX);
Proprietary trading and investment (bonds, equities);
Remittances;
Foreign exchange;
Foreign currency term loan;
Derivatives (interest rate swaps, cross currency swaps);
Hedging (interest rates – Chicago Board of Trade (CBOT), London Interbank-Offered Rate (LIBOR), etc); and
Correspondent banking (for Malaysian banks).
Can Malaysian residents obtain loans from Labuan banks?
With respect to trade financing, buyers and sellers can be outside of Malaysia and the underlying goods to be exported to, or imported from, other countries may also include Malaysia.

What You Need to Know